« to resource list

Small Business Jobs Act

In September 2010, Congress passed the Small Business Jobs Act of 2010, seeking to ignite the struggling economy by boosting small business.  The new law provides tax relief to businesses and individuals designed to promote investment, lending and hiring.  Of course, uncertainty remains as to whether Congress will allow the Bush-era tax cuts to expire in 2011, but the Act could provide at least some level comfort to business owners.

Some of the key provisions in the Act include:

  • Expensing deduction for 2010 and 2011 increased to $500,000 (from $250,000)
  • $250,000 of Qualified Real Property eligible for expensing for 2010 and 2011
  • 50% Bonus First Year Depreciation extended through 2010
  • First Year Depreciation Cap for 2010 for automobiles increased by $8,000
  • Deduction for start-up expenses increased to $10,000 (from $5,000)
  • Eligible Small Businesses may use General Business Credits to offset AMT
  • Gain Exclusion for Qualified Small Business Stock increases to 100%
  • Health Insurance costs can be deducted from 2010 Self Employment Tax
  • Retirement planning incentives including provisions favorable to Roth IRA plans
  • The Small Business Jobs Act could benefit you and your business, but it is important to discuss the details with your CPA and your attorney.  Only through proper planning can a business take advantage of the Act and avoid the potential pitfalls that exist in the fine print.  For example, many of the incentives only apply to activities that occur during the 2010 and 2011 tax years and apply in very specific situations.

    We want to help you understand and hopefully benefit from the newly enacted law, so please contact us to discuss a plan of action for your business.